Bond issuers can appeal to inflation-conscious investors by issuing floating-rate bonds.

Name: Bond issuers can appeal to inflation-conscious investors by issuing floating-rate bonds.
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Quizplus · Accepted Answer

This statement is true. Floating-rate bonds have interest payments that adjust based on a benchmark rate, which can help protect investors from the negative effects of inflation. As inflation increases, the interest payments on a floating-rate bond will increase, providing investors with a higher return.

Bond Issuers Can Appeal to Inflation-Conscious Investors by Issuing Floating-Rate